Mutarelli named interim CEO of Munroe

Published: Monday, August 26, 2013 at 9:23 p.m.

Last Modified: Monday, August 26, 2013 at 9:23 p.m.

An interim president and CEO of Munroe Regional Medical Center in Ocala was selected by the hospital’s board Monday.

Munroe Regional Health System’s board tapped long-time Executive Vice President/Chief Financial Officer Rich Mutarelli to step into the hospital’s top leadership position effective Sept. 1. The announcement came as owners of the nonprofit community hospital wrap up preparing a 40-year lease agreement, handing over the 421-bed hospital to be operated by a for-profit, Naples-based Health Management Associates.

Mutarelli will replace Steve Purves, who has been Munroe’s president and CEO since September 2006. He recently accepted a president and CEO job at Maricopa Integrated Health System in Phoenix.

“I appreciate the board’s confidence and support. With help from the executive team, I look forward to leading the organization,” Mutarelli said. “We will stay on the course that Steve has set and continue our primary focus of providing quality patient care. In addition, I look forward to helping guide our employees and physicians through a successful transition to Health Management Associates.”

The Mutarelli promotion was just the latest in a series of changes for Munroe Regional.

Earlier this year, Marion County Hospital District trustees announced they had decided to lease the hospital to HMA in exchange for more than $200 million in lease payments and immediate improvements to the hospital. That lease agreement is scheduled to be completed this year.

But this summer, HMA’s board announced it was selling its own hospital chain to Community Health Systems in Tennessee for $3.9 billion in cash and stock. CHS said afterward that it still wanted to lease Munroe.

But as details of the Munroe lease were being hammered out, HMA investors voted out their health-care company’s board. HMA investors said soon after the board takeover that they thought the $3.9 billion sales price for HMA was too low and had to be renegotiated.

Meanwhile, Marion County Hospital District trustees say they are continuing with lease negotiations regardless of the political backdrop involving HMA and CHS.

The HMA lease is expected to be approved before a potential CHS buyout is ever completed. It is unclear how long Mutarelli will remain in the CEO spot once the lease goes into effect.

Mutarelli became the Munroe’s chief financial officer in 1991. In 2005, Mutarelli was promoted to executive vice president/chief financial officer. He received his bachelor’s degree in finance from Wilkes University in Wilkes-Barre, Pa. He received his master of business administration degree from Webster University in St. Louis and is a certified public accountant.

“I am pleased to personally recommend this appointment to the board. This position is essential to leading Munroe Regional and its most critical work, and Rich brings deep experience,” said departing President and CEO Purves. “Rich is very capable and has earned the trust and confidence of the board, medical staff and employees. He truly cares about Munroe and its future.”

Trustees also said they had faith in Mutarelli.

“In addition to Rich’s experience, financial background and detailed knowledge of the health-care industry, Rich has already established a key role in our Health Management Associates long-term lease process. I look forward to his continued involvement and support to the trustees in his expanded role, as we move forward with the change of control transaction,” said board Chairman Jon Kurtz.

Munroe is owned by the state-sanctioned Marion County Hospital District and is overseen by seven trustees who are appointed by the County Commission.

The trustees lease the hospital to Munroe Regional Health System Inc., which is overseen by a 13-member board, some of whose members also are district trustees.

Without property tax support — a ballot measure failed in November — Munroe leadership said it needed an outside lessee to invest and keep the hospital competitive.

Mutarelli said despite all the upheaval about HMA, its board and CHS wanting to buy HMA, his role is to provide stability for Munroe, its staff and helping trustees with the HMA transition.

He said he still sees the lease moving forward.

As for his long-term plans with Munroe if it is leased, Mutarelli said “that has to be determined” and that he does not have any set plans.

<p>An interim president and CEO of Munroe Regional Medical Center in Ocala was selected by the hospital's board Monday.</p><p>Munroe Regional Health System's board tapped long-time Executive Vice President/Chief Financial Officer Rich Mutarelli to step into the hospital's top leadership position effective Sept. 1. The announcement came as owners of the nonprofit community hospital wrap up preparing a 40-year lease agreement, handing over the 421-bed hospital to be operated by a for-profit, Naples-based Health Management Associates.</p><p>Mutarelli will replace Steve Purves, who has been Munroe's president and CEO since September 2006. He recently accepted a president and CEO job at Maricopa Integrated Health System in Phoenix.</p><p>“I appreciate the board's confidence and support. With help from the executive team, I look forward to leading the organization,” Mutarelli said. “We will stay on the course that Steve has set and continue our primary focus of providing quality patient care. In addition, I look forward to helping guide our employees and physicians through a successful transition to Health Management Associates.”</p><p>The Mutarelli promotion was just the latest in a series of changes for Munroe Regional.</p><p>Earlier this year, Marion County Hospital District trustees announced they had decided to lease the hospital to HMA in exchange for more than $200 million in lease payments and immediate improvements to the hospital. That lease agreement is scheduled to be completed this year.</p><p>But this summer, HMA's board announced it was selling its own hospital chain to Community Health Systems in Tennessee for $3.9 billion in cash and stock. CHS said afterward that it still wanted to lease Munroe.</p><p>But as details of the Munroe lease were being hammered out, HMA investors voted out their health-care company's board. HMA investors said soon after the board takeover that they thought the $3.9 billion sales price for HMA was too low and had to be renegotiated.</p><p>Meanwhile, Marion County Hospital District trustees say they are continuing with lease negotiations regardless of the political backdrop involving HMA and CHS.</p><p>The HMA lease is expected to be approved before a potential CHS buyout is ever completed. It is unclear how long Mutarelli will remain in the CEO spot once the lease goes into effect.</p><p>Mutarelli became the Munroe's chief financial officer in 1991. In 2005, Mutarelli was promoted to executive vice president/chief financial officer. He received his bachelor's degree in finance from Wilkes University in Wilkes-Barre, Pa. He received his master of business administration degree from Webster University in St. Louis and is a certified public accountant.</p><p>“I am pleased to personally recommend this appointment to the board. This position is essential to leading Munroe Regional and its most critical work, and Rich brings deep experience,” said departing President and CEO Purves. “Rich is very capable and has earned the trust and confidence of the board, medical staff and employees. He truly cares about Munroe and its future.”</p><p>Trustees also said they had faith in Mutarelli.</p><p>“In addition to Rich's experience, financial background and detailed knowledge of the health-care industry, Rich has already established a key role in our Health Management Associates long-term lease process. I look forward to his continued involvement and support to the trustees in his expanded role, as we move forward with the change of control transaction,” said board Chairman Jon Kurtz.</p><p>Munroe is owned by the state-sanctioned Marion County Hospital District and is overseen by seven trustees who are appointed by the County Commission.</p><p>The trustees lease the hospital to Munroe Regional Health System Inc., which is overseen by a 13-member board, some of whose members also are district trustees.</p><p>Without property tax support — a ballot measure failed in November — Munroe leadership said it needed an outside lessee to invest and keep the hospital competitive.</p><p>Mutarelli said despite all the upheaval about HMA, its board and CHS wanting to buy HMA, his role is to provide stability for Munroe, its staff and helping trustees with the HMA transition.</p><p>He said he still sees the lease moving forward.</p><p>As for his long-term plans with Munroe if it is leased, Mutarelli said “that has to be determined” and that he does not have any set plans.</p>